Nagpur: After nearly a decade, the Nagpur Municipal Corporation (NMC) is preparing to launch a comprehensive, citywide property survey powered by Artificial Intelligence (AI), a move aimed at correcting discrepancies in property tax assessments and improving revenue collection.
The last such survey was conducted in 2016, though government norms mandate one every five years. With rapid urban expansion and rising unauthorized constructions, civic officials say an AI-driven system could be a game changer for accurate and transparent tax assessment.
Gold Rate
06 dec 2025
A pilot project recently carried out in the Laxmi Nagar Zone used AI tools to capture property details and cross-check them with NMC’s existing tax database. The results were revealing, out of 9,000 property entries generated by AI mapping, nearly 2,000 were new constructions, while 7,000 had undergone structural or usage changes that were not reflected in civic records.
To confirm the findings, NMC’s Tax Inspectors physically verified 380 randomly selected properties. The on-ground survey found 12 completely new buildings and 215 properties with major alterations such as additional floors, extensions, or conversion from residential to commercial use — none of which were updated in the tax register.
“This validation exercise proved the reliability of AI-generated data,” said an official from the Property Tax Department. “It helps us detect changes much faster and with greater accuracy than manual inspections.”
Under NMC’s current system, property tax is calculated based on land and building values, type and age of construction, and nature of use, parameters often affected by ongoing modifications. Manual record updates, however, have lagged behind, leaving large gaps in assessment.
Encouraged by the pilot’s success, NMC now plans to extend the AI-based survey to all ten administrative zones. The survey will combine satellite imaging and AI mapping with door-to-door inspections to finalise accurate taxable values. Officials clarified that while open plots will be excluded, all constructed properties, residential, commercial, and mixed-use, will be covered.
Revenue boost and transparency
Property tax remains the civic body’s largest source of income, yet inefficiencies in collection and assessment have left arrears exceeding ₹900 crore, excluding penalties. Civic officials believe the new AI-assisted model could add crores to annual revenue by capturing unassessed and under-assessed properties.
“The AI survey will not only help plug revenue leaks but also make the property tax system fair and transparent,” said a senior official. The civic body expects to roll out the citywide project early next year, following completion of tendering and technical groundwork.
Once implemented, the initiative could mark a major step toward digitised urban governance, bringing Nagpur’s tax management system on par with tech-driven civic models adopted in advanced Indian cities.
